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Directional imbalance in transport prices and economic geography

  • Takahashi, Takaaki
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    This paper examines how and why transport prices become imbalanced with respect to the direction of shipments and how this affects economic geography. It is shown that the equilibrium transport price of the shipment in a particular direction is a nondecreasing function of the relative size of the embarkation region. Furthermore, we show that the directional imbalance in transport prices increases the likelihood of the symmetric pattern being stable and decreases the likelihood of the core-periphery patterns being sustainable. In short, the imbalance acts as a dispersion force.

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    File URL: http://www.sciencedirect.com/science/article/B6WMG-50VKM8J-1/2/28355322e0128bc55e9fa76b3f0ae54a
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    Article provided by Elsevier in its journal Journal of Urban Economics.

    Volume (Year): 69 (2011)
    Issue (Month): 1 (January)
    Pages: 92-102

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    Handle: RePEc:eee:juecon:v:69:y:2011:i:1:p:92-102
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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    1. David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
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    6. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
    7. Sjostrom William, 2004. "Ocean Shipping Cartels: A Survey," Review of Network Economics, De Gruyter, vol. 3(2), pages 1-28, June.
    8. Behrens, Kristian & Gaigné, Carl & Thisse, Jacques-François, 2007. "Is the Regulation of the Transport Sector Always Detrimental to Consumers?," CEPR Discussion Papers 6185, C.E.P.R. Discussion Papers.
    9. Takahashi, Takaaki, 2006. "Economic geography and endogenous determination of transport technology," Journal of Urban Economics, Elsevier, vol. 60(3), pages 498-518, November.
    10. Se-il Mun & Shintaro Nakagawa, 2008. "Cross-border transport infrastructure and aid policies," The Annals of Regional Science, Springer, vol. 42(2), pages 465-486, June.
    11. repec:ebl:ecbull:v:18:y:2006:i:5:p:1-7 is not listed on IDEAS
    12. Mori, Tomoya & Nishikimi, Koji, 2002. "Economies of transport density and industrial agglomeration," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 167-200, March.
    13. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
    14. Picard, Pierre M. & Zeng, Dao-Zhi, 2005. "Agricultural sector and industrial agglomeration," Journal of Development Economics, Elsevier, vol. 77(1), pages 75-106, June.
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